IN Security and Exchange Commission tonight a charged california Matthew J. Skinner and five of his companies for conducting four unregistered and fraudulent real estate offers between 2015 and 2020. Participating companies Empire West Equity Inc., Bayside Equity LP, Longacre Estates LP, Freedom Equity Fund LLC and Simple Growth LLC. More than $ 9 million has been raised from over 100 investors.
Skinner, who claimed to be a successful real estate investor and made deals, repeatedly misled investors and misused millions of dollars, according to the Securities and Exchange Commission. While these investors were told that their money would go towards specific projects or investments, often with “guaranteed” double-digit annual returns, he actually spent it on European vacations and paying for Maserati and Aston Martin. He allegedly siphoned off additional funds for unrelated operating and marketing expenses and made payments like Ponzi to others.
“According to the SEC complaint, Skinner owes investors millions of dollars and he falsely blamed the COVID-19 pandemic for not paying them, telling investors that their money is safe when in fact he spent it all,” the SEC said in a statement. release. “The Securities and Exchange Commission says Skinner used these false statements to pressure some investors to extend their investment timeframes.”
“Skinner allegedly deceived investors with false promises, while embezzling their money,” said Michelle Vine, director of the SEC’s Los Angeles regional office.
Skinner, Empire West, Longacre Estates, Bayside Equity, Freedom Equity Fund and Simple Growth have been accused of violating the securities registration requirements of sections 5 (a) and 5 (c) of the Securities Act of 1933 and anti-fraud regulations See Section 17. (a) of the Securities Act and Section 10 (b) of the Stock Exchange Act 1934 and Rule 10b-5. He is also charged with violating the broker and dealer registration requirements under section 15 (a) of the Exchange Act. The legal sanctions are intended to permanently prohibit him or any person under his control from collecting money through unregistered offers and receiving or receiving money related to or received from Longacre Estates LP or Bayside Equity LP, or related real estate projects.